High-Tax Advocates Are Either Credulous or Envious of Wealthy | Richard W. Rahn | Cato Institute: Commentary

High-Tax Advocates Are Either Credulous or Envious of Wealthy | Richard W. Rahn | Cato Institute: Commentary: 'If you think increasing tax rates on the "rich" is the correct economic policy, then you also need to believe the following:

That most government spending is cost-effective, and cutting 3 percent of it (approximately $110 billion out of the current $3.7 trillion budget) would be more damaging than increasing taxes by $100 billion on many of those who create jobs.'

'That getting rid of the huge amount of waste and fraud in government programs, whether it is Medicare, Medicaid or defense, would do more damage to the economy than increasing tax rates on many highly productive people. Every year, many studies by government agencies and nongovernment groups show billions of dollars of waste and fraud within government, yet few government employees are fired or sent to jail, and little is done to correct the problems.'

'That being "rich" or "wealthy" is the same thing as having a high income. Many wealthy people generate much of their income from nontaxable sources, such as state and local bonds, and would not be affected by the higher tax rates being proposed. But some people with high incomes, such as young doctors, may have negative net worth because of the debt they incurred to obtain their education, and yet they would be hit by these proposed taxes.'